Weaker U.S. equity markets are helping to prop up the Dollar as traders have become more risk averse to higher yielding assets. Trading conditions are thin which makes it difficult to determine if today’s action is being triggered by holiday liquidation or U.S. economic reports. Nonetheless, the trading action is not normal so beware of possible traps being set by shrewd speculators.

This morning it was reported the U.S. 3rd Quarter GDP fell from 3.5% to 2.8%. This was inline with economist estimates. The drop in GDP was attributed to a wider trade gap and lower consumer spending.

A better-than-expected improvement in November Consumer Confidence failed to fuel a rally in equities which helped underpin the Dollar.

Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.